The document discusses how viewers are increasingly consuming video content on devices other than TVs, such as smartphones, laptops, and tablets. It finds that TV viewership has declined 13% globally in the past year as viewers shift to watching content on connected devices. Media companies must adapt to this change by developing content that can be shared across multiple screens. While reports of TV's demise are premature, the way people watch content is undergoing profound changes. Media companies must enhance their digital capabilities to better understand consumer behaviors and tailor their offerings accordingly across different devices to remain competitive against new digital entrants.

1. Digital Video and the
Connected Consumer

2. TV’s undisputed popularity as the go-to entertainment device is
ending. Now, as viewers shift their allegiance to other devices,
media companies must identify new ways to package content
and share it across multiple screens.
Split Screen
Are we watching the death of TV, on
multiple screens? Not yet. But the
way viewers consume video content
is changing faster than ever before.
The fifth annual multinational
‘Accenture Digital Consumer Survey’
puts this into focus.
Consumption of short-form video
content on IP-connected devices
keeps on growing. Take one example:
the number of hours YouTube’s
billion-plus users spend watching
content on the site is up 50 percent
year-on-year – and over half of all
views are on mobile devices1. And
now it’s clear that viewership of
long-form video content – like
movies and television shows – is
shifting emphatically from the TV to
other digital devices (computers/
laptops, smartphones and tablets).
It’s a dramatic trend. Globally, the TV
has lost 13 percent of its audience
for this type of content in the past
year (in the US, it’s an 11 percent
decline). And it’s not just TV shows
and movies that are increasingly
being watched on non-TV devices.
Ten percent fewer people around the
world watched sports on a TV screen
last year (Fig. 1).
We found that the TV is the only
category of device experiencing
uniform, double-digit usage declines,
across different types of media
worldwide, among viewers of nearly
all ages. In other words, it’s not just
‘screenagers’ who are turning their
backs on the TV although 14-17
year-olds are abandoning TV screens
faster than any other group.
Profound changes are taking place in
how all of us consume video content
– and they’re happening right in
front our eyes (Fig.2).
Crucially too, we found that where
people are watching TV, they’re doing
so in combination with at least one
other device. 87 percent of
consumers are also using their
smartphone, tablet, game console,
ebook or laptop whilst watching TV.
In other words, the second screen is
firmly established as a key element of
the value proposition for all media
companies.
For incumbent TV broadcasters,
satellite and cable providers, these
are truly pivotal developments. Our
survey shows that consumers still
trust established brands more than
disruptive digital players. But with
these same consumers switching
their allegiance from the TV to other
devices, it’s the new market entrants
like Netflix, Amazon and BlinkBox
that stand to win. Built around
platforms that can capture and
capitalize on the rich consumer data
flowing from IP-connected devices,
they’re able to exploit seamless
feedback loops between their
audiences and their operations – by
listening to their customers and
tailoring content and services to this
new reality. The incumbents MUST
catch up to avoid squandering their
brand advantage.
The proliferation of digital consumer
devices is generating a wealth of
usage data that can only be
harvested through digital platforms.
Development of these platforms, and
supporting talent and capabilities, is
therefore a top priority. For
incumbent broadcasters,
programmers and content makers,
what’s needed is a marriage of art
and science – decisive competitive
edge will be the prize for
organizations that can enhance
decades of content creation, curation
and editorial experience with the
feedback that audiences are now so
willing to share.
1. Source: April 2015, www.youtube.com/yt/press/en-GB/statistics.html
2

3. Figure 1: Preferred device when accessing different types of digital content
% Users selecting 1 or 2 preferred devices for each of the digital content
Figure 2: Frequency of accessing digital content
% Users that are accessing content “daily” AND “weekly”
Source: 2015 Accenture Digital Consumer Survey.
Source: 2015 Accenture Digital Consumer Survey
38%
52%
8%
8%
54%
19%
25%
15%
23%
43%
8%
6%
Video Clips
% = Movement from last year
TV Shows / Movies Sport Games / Matches
+9% +1% +6%
+3% +2% +3%
+4% +4% +3%
-13% -3% -10%
44%
29%
16%
16%
47%
46%
11%
9%
34%
58%
5%
7%
23%
64%
1%
3%
TV Shows / Movies
Ages
+16% +10% +11% +8%
+9% +3% +1% +0%
+12% +4% +4% +1%
-33% -14% -11% -6%
14-17 18-34 35-54 55+
% = Movement from last year
3

4. None of this is to say that TV’s
demise is imminent. In America, for
instance, TV viewing is still the
favorite entertainment pastime –
and by a long way. But our survey
shows that people, across age
groups and geographies, are
spending more time surfing the web
and watching streaming services,
and less time in front of their
televisions.
Why? A number of reasons come
into play: not least smartphones
with larger screens which make it
easier to view video content on-
the-move, away from home and,
indeed, at home. The trend for
binge-viewing series like Breaking
Bad and Game of Thrones on OTT
platforms adds momentum. A recent
survey shows why. One-third of all
respondents in the Arris 2014
Consumer Entertainment Index said
they use their mobiles for binge-
viewing, with one quarter using
their laptops2.
And looking ahead, we’re seeing a
number of emerging trends that
point to an accelerated shift away
from the TV as the primary screen.
Availability of live linear, for example,
with sports viewing on mobile
devices is gaining traction (shown by
traffic through Star India’s “hotstar”
and starsports during the 2015
Cricket World Cup). Increased
availability of content offline is
another factor, with increased
downloads of content across
geographical barriers (e.g. DISH’s
international package and Starz’s
newly launched subscription online
video service – Starz Play Arabia –
aimed at young viewers connecting
via mobile devices). And, although
yet to have a significant impact, the
predicted increase of in-car viewing
(as connected/driverless cars enter
the mainstream) will further fuel
out-of-home video consumption.
Recent research by tracking firm
Nielsen throws existing developments
into stark relief. It shows how
growing numbers of households in
the US are opting to dump their TVs
altogether and go “broadband only”
(2.8 percent of all households neither
subscribe to cable nor pick up a
broadcast signal, almost three times
last year’s total).
Online content consumption is no
longer the preserve of early adopters.
In fact, frequent access to digital
content is now the norm. Globally, 78
percent of consumers are watching
video clips online daily and weekly;
76 percent are watching TV shows
and movies either via the internet or
through a dedicated app.
Capitalizing on the digital surge,
we’re seeing increasing disruption
from “cord cutters” on both sides of
the Atlantic. This is starting to
transform how viewers watch and
pay for TV – and it’s a trend that
extends far beyond Netflix, Amazon
and YouTube. Significantly, the same
live channels and shows that
broadcast on TV are bypassing cable
contracts and streaming straight to
the viewer. Media companies right
across the spectrum are in on the
act: HBO’s doing it with HBO Now.
CBS is doing it with Live TV. Dish is
doing it with Sling TV. Sony’s doing it
with PlayStation Vue. And Apple will
be doing it later this year.
2. Source: April 2015, www.youtube.com/yt/press/en-GB/statistics.html
Figure 3: Frequency of accessing digital content
% Users that are accessing content “daily” AND “weekly”
Source: 2015 Accenture Digital Consumer Survey
78%
Video Clips
59%
Sports Games
or Matches
91%
Social
62%
Books/
Textbooks
73%
Gaming
76%
TV Shows/
Movies
83%
Newspapers
Reports of TV’s demise are premature, but…
4

5. 5

6. Multi-screen usage is now a fact of
life for most of us. Whether we’re
checking emails and tweeting
commentaries while watching a
sports game on TV, or catching up on
a favorite program while traveling,
we’re all viewing more and more
digital content on a screen or device
other than our traditional TV.
Our survey shows that overall 37
percent of consumers now own a
combination of smartphones, laptops,
desktops and tablets. It also found
that 16 percent of consumers own a
connected TV, in addition to a
combination of these other devices.
And more importantly, they’re using
these devices to access all kinds of
content on a daily basis (Fig.4).
We found that as many as 87 percent
of consumers are now using the TV
and a second screen together, in
ways that complement each other,
whether that’s getting more
information on a TV program,
accessing social media to get
reactions to what they’re watching
on the TV screen, or shopping online
(particularly popular amongst TV
viewers in the Asia-Pacific region).
The smartphone is the most frequent
companion device (for 57 percent of
multi-tasking viewers), just ahead of
computers/laptop devices (favored by
50 percent of multi-taskers). Drilling
down deeper, it was less surprising to
find that smartphones are preferred
by 14-17 year-olds, and computers/
laptops by 45-54 year-olds (Fig.5).
Clearly it’s time for media companies
to continue developing a new
generation of services that plug into
this second-screen phenomenon.
Viewing habits will need to be
integrated into existing offerings to
capture loyalty and help drive
additional revenues, and the ability
to deliver a seamless experience
across devices looks set to be an
increasingly important differentiator.
Figure 4: Combined product ownership of major device categories per country
Sample base: all respondents | N=24000
Source: 2015 Accenture Digital Consumer Survey
58%
49%
47%
35%
19%
20%
42%
16%
16%
16%
40%
40%
40%
36%
33%
15%
15%
6%
15%
South Africa
France
UK
USA
Sweden
Australia
Italy
Spain
China
Germany
37%
16%
Overall
% Consumers in Each Country owning a
combination of Tablet, Laptop/desktop
and Smartphone
% Consumers in Each Country owning a
combination of Tablet, Laptop/desktop,
Smartphone and Connected TV
Welcome to the multi-screen world
6

7. Figure 5: Consumers multi-tasking by using more than one device simultaneously
% Multi-tasking users selecting all applicable devices used while watching TV
Sample base: Respondents owning the specific devices and multi-tasking while watching TV | N=17048
Source: 2015 Accenture Digital Consumer Survey
14-17
Ages
45-54
35-44
55+
18-34
14-17
45-54
35-44
55+
18-34
14-17
45-54
35-44
55+
18-34
57%
74%
71%
59%
42%
27%
44%
49%
48%
53%
50%
35%
26%
29%
23%
18%
50%
25% +
+
+
Tv + Smartphone
Tv + Laptop/desktop
Tv + Tablet
7

8. 89%
42%
33%
32%
Advertising
interruptions during
the program
Initial time required for
buffering-waiting to play
the video
Video or sound stops
playing, or is distorted
during play
Figure 6: Consumers watching long-form video content over the internet on any screen
Sample base: respondents over 18yo accessing long-form video content | N=21283
Source: 2015 Accenture Digital Consumer Survey
The availability of video services
online is growing all the time – and
so is the number of consumers that
are willing to pay for them
(22 percent worldwide, up 4 percent
in the past year). Increasingly,
however, as consumers view more of
their content online, we’re seeing
quality stand out as a key concern.
Expectations of seamless HD content
experiences are feeding through to
IP-connected devices and with 89
percent of viewers now watching
long-form video on connected
devices, it’s perhaps no surprise to
find that 42 percent are complaining
about advertising placement,
buffering, or the time it takes for
videos to load and start playing
(33 percent). Underinvestment in the
network is clearly beginning to take
its toll (Fig.6).
This creates some real opportunities.
Respondents said they’d be willing to
pay for online video services if more
variety of premium content was
available, there were less advertising
interruptions and better video and
audio quality was experienced.
Quality is a particular concern for
viewers in the Middle East and Latin
America. But it’s also a major factor
in Europe and the US (for 42 percent
and 32 percent of viewers,
respectively). Higher investment in
broadband networks will help drive
more viewers online. And media
companies that can bridge the
quality gap between should reap the
rewards.
It’s evident that providers’
investments in network quality will
help drive better performance in
customer retention. Although
networks’ bandwidth quality has
improved in the past year, more than
half of consumers still report facing
poor internet connections on a
frequent basis – via home broadband
and mobile internet. Consumers are
now less prepared than they were a
year ago to pay extra for a more
reliable internet connection.
Increasingly they expect this to be an
integral “part of the package”.
The clock is ticking. Our research
shows that 39 percent of consumers
are planning to switch to a new
broadband provider in the next
12 months (because of poor quality
internet), and 43 percent of
consumers are planning to switch to
a new mobile operator in the next
12 months for the same reason.
Long form video content consumption
% Users accessing TV shows, movies or sport over the Internet
Top 3 concerns to consumers while watching online video
% Consumers selection their first 3 complaints
Focus on the quality
8

9. Crucially, our research shows that
incumbent operators have an
opportunity to dominate the new
video content marketplace –
provided they play to their
strengths. Consumers place far
higher trust in these organizations’
ability to deliver quality content and
support for video-over-the-internet
services (Fig. 7).
But if they don’t act now, they risk
wasting this valuable brand
advantage. The new generation of
disruptive digital players may still
be less trusted brands, but they’re
purpose-built for a digital world
where people are increasingly likely
to consume video content via
IP-connected devices other than the
TV. These devices allow for much
more seamless feedback, and the
new entrants have all built
platforms to capture this.
It’s these feedback loops that
facilitate disruptive internet video
providers to know their audiences,
continuously test new content and
services, and respond with real
agility and intuition. From now on,
understanding consumers and
ensuring decision-making is
centered on consumer insights will
both be increasingly key to the
success and, ultimately, the survival
of incumbent operators. This
relentless focus on consumer
optimization will have an impact on
all elements of a broadcaster’s
business: from content decision-
making to implementing converged
operating models and exploiting
the data advantage – using
advanced analytics to make
continuous and increasingly
relevant content recommendations
to individual consumers.
Figure 7: Most trusted providers for a quality video over the Internet service on TV screen
% Users selecting one preferred provider from the below options
Source: 2015 Accenture Digital Consumer Survey
31%
33%
32%
27%
39%
21%
26%
24%
23%
30%
15%
37%
22%
25%
26%
15%
23%
14%
15%
15%
13%
24%
13%
26%
5%
3%
6%
4%
10%
2%
Overall
North
America
Western
Europe
Middle
East
APAC
Latam
Your Tv Broadcaster-
Satellite Operator
Your Cable
Tv Company
Telecommunication-
Broadband Provider
Internet Video
Provider
Social Media Service
Provider
Play to your strengths
9

10. Evidently therefore, broadcasters need to
start investing aggressively in multi-
device platforms, as well as securing
teaming relationships that leverage their
footprints further into the multi-device
space. A simple repackaging of the same
programming available anywhere is
unlikely to make the grade.
Innovate, differentiate, dominate
We know consumers are looking for
much more than the same old, same
old. They’re ready and waiting to
place their trust in providers that can
deliver the right package, to the right
device, at the right price, and with
the right quality. For established
companies, as we’ve shown, there’s
everything to play for. Provided they
can develop the digital capabilities
they need to establish and sustain
direct relationships with their
consumers, customize content and
experiences, and engage
everywhere, they’ll be able to build
on their existing brand advantage
to powerful effect.
10

11. 11

12. Copyright © 2015 Accenture
All rights reserved.
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High Performance Delivered
are trademarks of Accenture.
About Accenture
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consulting, technology services and
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unparalleled experience, comprehensive
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clients to help them become high-
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The company generated net revenues of
US$30.0 billion for the fiscal year ended
Aug. 31, 2014. Its home page is
www.accenture.com.
Authors
Gavin Mann
Global Managing Director,
Accenture Broadcasting
Francesco Venturini
Global Managing Director,
Accenture Media & Entertainment
Robin Murdoch
Global Managing Director,
Accenture Internet & Social
Bikash Mishra
Senior Manager, Accenture Strategy
Gemma Moorby
Accenture Media & Entertainment
Bouchra Carlier
Senior Manager, Accenture Research
This document is produced by consultants
at Accenture as general guidance. It is
not intended to provide specific advice on
your circumstances. If you require advice
or further details on any matters referred
to, please contact your Accenture
representative.
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lawful owners of such trademarks.
About Pulse of Media
Digital Video and the Connected
Consumer forms part of the Pulse of
Media study. Pulse of Media is based on a
collection of hypotheses developed by
Accenture subject matter advisors,
strategy consultants, architects and
engineers working in the field. These
hypotheses have been screened against
inputs from an array of sources including
the 2015 Accenture Digital Consumer
Survey, third party data analysis,
academic literature, the flow of venture
capital funding and dialogue with
industry commentators, operators and
disruptors. Join the conversation
#pulseofmedia or please visit www.
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